Technical Tuesday - How to Quickly Reclaim Your Losses
IT’S GAME TIME
You might be down in this “quarter”, this half or this “inning”. (You pick the sport - I’ll apply the analogy.)
It’s time to make that epic Q4 comeback and take back everything the market’s have snatched away from you this year.
The stock market has been “going by the book” throughout 2022. Midterm years are supposed to be ugly. But you’re about to enjoy a rare opportunity for revenge.
We’re going to profit from the sharp decline and then dump those profits into bullish positions when the market gets oversold!
I’ve “nailed” this in every midterm election year that I’ve ever traded or guided.
So in 1998 (October marked the bottom), 2002 (October marked the bottom), 2006, 2010 (October marked the bottom), 2014 (October marked the bottom), 2018 (October marked the first bottom and the bottom was in December).
I think I will “nail it” this time around in 2022. The term “nail it” is appropriate because the chart pattern looks like a nail or a wedge hammered into the ground.
The best part is that the dramatic sell off (which you can profit from if you take bearish positions) is almost always followed by a massive market rally in the following (pre-election) year.
But here’s the thing…
It only works if you step up and take advantage. You have to do some work. You have to give it your attention. If you’re up for the challenge, I will help guide you to make back anything you’ve lost and then some.
But I can’t do it without you.
Fortunately, my history is documented right here on this website. I told you in November the market was topping. I told you throughout the selloff to take bearish positions. I told you in April that I sold my clients stocks and bonds and that I re-deployed that money in late-June/early-July.
I told you the market would have a summer rally and in August I told you to get bearish and I launched a bearish model for my clients. I have to say, I’m not sure how much longer I’ll be writing to everyone if more people don’t start listening to me, and fast.
It’s not complex. Here’s what typically happens with the S&P.
With the Nasdaq…
And with the Dow Jones.
And I went back 30 years to show you almost every midterm October. Scroll through and scan the images. I’ll meet you at the bottom, at 2018.
We'll start with the midterm year of 1978...
You are not too late for “Step-1” which is to profit from declines. I’ve shown reades how to do this before every mid-term selloff.
And notice how, at just about every mid-term decline, the market either bottomed out in October (most common) or was in the process of jumping off the bottom.
In 2018, you can see the market tried to bottom in October but then took a nosedive into December. Yes, it’s not always a text book play. But I will gladly mentor you twice-a-week for next to nothing and we can get through this together.
For example, look at what I told paying members of my service in December 2018.
And what I told True market Insiders readers in January 2019…
I showed you all the midterm election year charts so you can see that the October effect (if I may call it that) is reliable.
The story typically ends the same. We saw a slight difference during the 2018 midterm lows, where the market declined into December.
The day after the midterm results were in, I held an event called “Ricochet Profits.” It was November 8th and I checked with my platform, Sector Prophets to see which sector was the strongest after the results had been in.
During the “Ricochet” event, I used the platform to give you 3 stocks and 2 software ETFs
- Trade Desk Inc. (TTD)
- Attunity (ATTU)
- Twillio Inc (TWLO
Attunity was taken private three months later and gained 10% (40% annualized) while the stock market declined 0.38%. Twillio was up 28% in 3 months and Trade Desk was up 61%.
I also asked (during the event) what you would do if I could triple your stock account in 3 years. The positions I gave you ended 338% higher in 3 years but what they did in the interim was even bigger.
Here’s that same info in a different form.
Between the long-term low of the midterm year, and the high of the following year, we get to enjoy one of the best and biggest buying opportunities of the entire four-year cycle.
I’m not exaggerating when I say that these are some of the biggest, most life-changing gains you’re likely to see.
I want to help deliver these types of gains to you. Of course everyone sees different results because not everyone follows me perfectly. But I have to believe you’d be a happy trader if you had bearish positions on, and were profiting from this decline like I do.
The trick is knowing how to play it step by step by step.
I’ve been helping investors like you through every scary market. But the only investors that actually get help are the ones who don’t cower in fear as the market declines.
So step up.
Let me show you what happened in the last nightmare of a market, because I really want to drive the point home that life-changing gains happen in markets just like the one we are in, right now.
Back on October 27, 2008, I published the following article.
We had just seen the Shanghai Composite drop from 6,000 to 1,000 (losing 70%). In other words, we had an opportunity to buy in after the mother of all selloffs.
I recommended companies like China National Offshore Corporation "CNOOC" (CEO)... Petro China (PTR)... China Life Insurance (LFC).
Here’s what happened to CEO (the blue arrow points to when I put out the article).
Here’s how PTR performed:
And here’s LFC:
Those are the kinds of transformational gains we’re talking about. This is what’s available when a tightly-coiled, washed out market springs higher.
About a month after putting out that October column, I published this one.
I told my readers to get into Baidu (BIDU) and New Oriental Education & Technology Group, Inc. (EDU).
Here’s how BIDU did:
And here’s EDU:
Also in 2008, I also recommended the following trades to other of my paid readers.
Those Chinese stock examples showed you what’s available when your indicators can spot the best stocks in a washed out and oversold market.
In early 2020, things looked soft in the market, although that wasn’t obvious to most observers. For me, it was time to get bearish.
I underlined the entry dates so you and you can see when I exited – near the Covid-crash low. The far right column shows the options gains and to the left of that are the stock gains.
On February 4th, right before that crash, I even sent a bearish trade idea to True Market Insider readers, for free. It was a Put option that gained 425% at the crash low. And how would you know to have taken your profits?
On March 19th at 9:30pm eastern, I sent an article to True Market Insiders readers.
What’s more, on that very same day I sent a BULLISH alert to my Deep Market Trader readers. The stock was ZYXI and as always I included a Call option with the stock trade.
I closed out the trade three months later. The stock trade was up +122% and the Call option was up +262%.
I want to save you like I’ve done every 4 years. I can’t promise you I’ll play it perfectly. In fact, I’m probably due for a loser!
But the education I want to bring you (stuff I’ve learned from studying and from making mistakes in my 27-year career) can never be taken from you.
I’ve shown that it’s possible (even repeatable).
As always, thank you for your time and attention.
Founder and CEO, True Market Insiders
“You see it in the price before you see it in the news.”